USD ends a volatile week calmly

U.S. Dollar Trading (USD)

U.S. Dollar Trading (USD) was relatively stable going into the weekend although slightly stronger as stocks gave up gains into the US session close. US data was predictably weak with the October UoM Consumer Sentiment falling to 57.5 vs. 70.3 previously as the Stock market Volatility took its toll. Also released, September Housing Starts falling -6.3% to 0.82M. In the U.S. share markets, the NASDAQ was down 6 points (-0.37%) and the Dow Jones was down 127 points (-1.41%). Crude Oil closed up $2 ending the New York session at $71.85 per barrel. Looking ahead, September leading Indicators are expected at -0.3% vs. -0.5%.

European Euro

The Euro (EUR) was a relatively quiet day with the pair ranging between 1.34 and 1.35 as weak US data supported and stock losses capped gains. On the Data front the EU August trade Deficit was -6.1B vs. -5.4B expected. Overall the EUR/USD traded with a low of 1.3385 and a high of 1.3516 before closing the day at 1.3405 in the New York session. Looking ahead, September German PPI is forecast to fall -0.5% vs. -0.6%.

Japanese Yen (JPY)

The Japanese Yen (JPY) was also very quiet on Friday with most of the action being kept to the crosses especially the high yielders such as the AUD/JPY which waxed and waned with the stock market. The Yen finished on the front foot as US stocks slumped in the US close. Overall the USDJPY traded with a low of 100.58 and a high of 101.81 before closing the day around 101.65 in the New York session.

Pound Sterling (GBP)

The Sterling (GBP) kept to one of its tightest ranges in recent months as the recovery from below 1.70 earlier in the week continued. Some solid buying emerged after the US data was weaker than expected and Interbank lending rates continued to fall. The Pound continued to outperform the Euro threatening to break below the key 0.7700. Overall the GDP/USD traded with a low of 1.7220 and a high of 1.7385 before closing the day at 1.7272 in the New York session.

Australian Dollar (AUD)

The Australian Dollar (AUD) continued to be very volatile as the market expressed its risk sentiment through the Aussie. The Aussie slumped in Europe before early Wall St. gains lead to a complete reversal of mood and the AUD soared to test 0.7000. Overall the AUD/USD traded with a low of 0.6730 and a high of 0.7012 before closing the US session at 0.6905 looking ahead, October Q3 PPI is forecast at 0.9% vs. 1.0% previously.

Gold

Gold (XAU) continued to ease as Interbank interest rates continued to come off highs. Overall trading with a low of USD$774.30 and high of USD$815 before ending the New York session at USD$883 an ounce.

Technical Analysis: USD Relatively Stable This Weekend

Euro (EUR)

Euro – 1.3405 : Initial support at 1.3347 (Oct 16 low) followed by 1.3260 (Oct 13 trend low). Initial resistance is now located at 1.3538 (Oct 16 high) at followed by 1.3690 (Oct 9 high).

Yen (JPY)

Yen – 101.50 : Initial support is located at 99.27 (Oct 16 low) followed by 97.91 (Oct 10 trend low). Initial resistance is now at 102.16 (Oct 15 high) followed by 103.07 (Oct 14 high).

Pound Sterling (GBP)

Pound – 1.7300 : Initial support at 1.7136 (Oct 16 low) followed by 1.7106 (61.8% retrace 1.6781-1.7631). Initial resistance is now at 1.7384 (Oct 17 high) followed by 1.7631 (Oct 14 high).

Australian Dollar (AUD)

Australian Dollar – 0.6900 : Initial support at 0.6731 (Oct 17 low) followed by the 0.6496 (Oct 16 low). Initial resistance is now at 0.6985 (Oct 17 high) followed by 0.7076 (Oct 15 high).

Gold (XAU)

Gold – 785 : Initial support at 774.40 (Sept 17 low) followed by 764.6 (Sept 15 low). Initial resistance is now at 850 (Oct 16 high) followed by 856.46 (Oct 15 high).